CanAlaska Uranium: Korean Consortium execute $19 million investment in Cree East Uranium Project

    VANCOUVER, Oct. 12 /CNW/ - CanAlaska Uranium Ltd. (TSX-V: CVV)
("CanAlaska") - Further to the Company's July 31st, 2007 press release,
CanAlaska is pleased to announce the execution of definitive agreements for
investment by a Korean Consortium led by Hanwha Corporation ("Hanwha") towards
uranium exploration of CanAlaska's Cree East Project, located in the Province
of Saskatchewan, Canada.
    According to Mr. Emil Fung, Vice President - Corp. Development, "The
members of the Korean Consortium comprise Korea's leading energy and natural
resource companies. Korea Electric Power Corporation ("KEPCO"), Korea
Resources Corp. ("KORES") and SK Energy Co. Ltd. ("SK") will join with Hanwha
to invest Cdn$19 million towards an earn-in of a 50% ownership interest in the
Cree East Project over a 4-year period". Under the terms of the executed
agreements, the Korean Consortium will recompense CanAlaska for all
exploration expenditures incurred by CanAlaska on the Project since June 1st,
2007. The agreements will be held in temporary escrow with final funding
subject to requisite approvals from the respective Boards of the Korean
Consortium and from the Korean Government.
    The Cree East Project is situated in the South-eastern Athabasca Basin,
approx. 25 km west of the Key Lake uranium mine, and 20 km south-west of
Cameco Corp.'s Millenium uranium deposit. The Project claims were staked by
CanAlaska in 2004, and covers 559 sq. km. of the Wollaston-Mudjatik domain
rocks. Historical drilling tested alteration zones and targets, generally to
the south and east of the property, and current exploration by other companies
is revisiting these areas. The depth to the unconformity varies from
100 metres in the south to an inferred 800 metres in the north. From
geophysical evidence and past drilling, there appears to be a number of step
structures at the unconformity boundary and in the basement.
    CanAlaska carried out airborne surveys across the property area in 2005
and determined priority targets. In 2006, detailed collection of over 2,000
surface rock samples and over 400 lake sediment samples by CanAlaska's field
crews defined three large areas of dravite and clay alteration on surface, and
localised boulder samples containing anomalous uranium.
    It is thought that the dravite and clay alteration, coupled with the
anomalous uranium in the lakes and boulders in this vicinity indicates the
proximity of unconformity and basement style uranium mineralization. The
shallow depth to basement also allows close definition of conductive zones and
geological structures, using the airborne survey data.
    During the summer of 2007, the Company conducted further IP-Resistivity
and Audio Magneto Telluric geophysical surveys. Initial ground geophysical
data have provided the Company with evidence of strong alteration in the
sandstone horizons overlying these basement conductors. Drilling is planned to
commence in the 2007 winter season.
    Mr. Peter Dasler, President & CEO of CanAlaska states, "We are most
pleased to welcome the members of the Korean Consortium as our strategic
exploration partner. We look both to their strategic and financial resources
in support of our efforts to discover a major uranium deposit." Mr. Tae-Jin
Yang, President & CEO of Hanwha Corp./Trade Division states, "The Korean
Consortium has selected CanAlaska's Cree East Project for investment due to
its favourable location in the uranium-rich Athabasca Basin. CanAlaska
possesses a highly-professional geological team and we look forward to
advancing their efforts towards discovery."
    To view a map of the project site please see:

    About CanAlaska Uranium Ltd. --

    CanAlaska Uranium (CVV -- TSX.V, CVVUF -- OTCBB, DH7 -- Frankfurt) is
undertaking uranium exploration in seventeen 100%-owned and two optioned
uranium projects in Canada's Athabasca Basin. Since September 2004, the
Company has aggressively acquired one of the largest land positions in the
region, comprising over 2,500,000 acres (10,117 sq. km or 3,906 sq. miles).
CanAlaska has expended over Cdn$24 million exploring its properties in the
Athabasca Basin and has delineated multiple uranium targets. Initial drilling
results from the West McArthur Project revealed uranium mineralization and
significant zones of hydrothermal alteration, indicative of a favourable
environment for uranium deposition. Active drilling and exploration has
continued through the Summer, and Fall 2007 seasons at West McArthur and at 2
other significant projects. The Company's high profile in the prominent
Athabasca Basin has attracted the attention of major international strategic
partners. Among others, Mitsubishi Development Pty., a subsidiary of Japanese
conglomerate Mitsubishi Corporation, has undertaken to provide CanAlaska
C$11 mil. in exploration funding to earn 50% of the West McArthur Project.
Agreements have also been executed with a Korean Consortium led by Hanwha
Corporation to enter into C$19 million investment to earn 50% of the Cree East

    About Hanwha Corporation -

    The Hanwha Group is Korea's seventh largest conglomerate, with over
$20 billion in total sales and a combined market capitalization of $4.65
billion in its listed companies. The Group is active in chemicals & machinery,
finance, services and construction. Hanwha Corp./Trade Division is one of
Korea's leaders in the field of industrial materials, including steel,
chemicals and petrochemical products. The Division recorded sales of
$1.65 billion in 2006 and has contributed to the globalization of the Korean
economy through trade, natural resources development and strategic alliances
with foreign corporations.

    About Korea Electric Power Corporation (KEPCO) -

    KEPCO is a Korean government invested diversified energy company with
assets over $US 83 billion and revenues of over $US 29 billion. The company is
involved in the generation, transmission and distribution of electrical power
from nuclear, hydro, coal, oil and LNG sources worldwide. KEPCO provides
electricity to almost all households in Korea and operates 20 nuclear power
plants in the country with eight more under development. The company has over
30,000 employees and is listed on the Korean Stock Exchange and the New York
Stock Exchange.

    About Korea Resources Corporation (KORES) -

    KORES is a government-owned organization founded in 1967 to promote
resources development in Korea. The Corporation has played a pivotal role as a
supporting organization of the resources industry in Korea, as well as taking
a pioneering leadership position in information technology and financial and
advisory services. KORES focuses its efforts in five strategic lines of
business: (i) development of domestic resources; (ii) support to the stone and
aggregates industry; (iii) expansion of overseas resources; (iv) technical
support and consulting to domestic resources industries; and (v) the
construction of resource information centers.

    About SK Energy Corporation -

    Founded in 1962 as Korea's first oil refiner, SK Energy is one of the
world's leading energy and petrochemical companies with 5,000 employees, KRW
23.65 trillion in sales and 26 offices spanning the globe. The company is
strategically positioned as Korea's largest - and Asia's fourth largest -
refiner with a refining capacity of 1.15 million barrels per day, as of 2006.
SK Energy's rapid growth in its business sectors - coupled with an expanding
position in China - has helped position it as one of the most significant
enterprises in Asia Pacific's energy marketplace. SK Energy is currently
engaged in exploration and development activities in 26 oil/gas blocks in 14
nations worldwide.

    On behalf of the Board of Directors


    Peter Dasler, M.Sc., P.Geo.
    President & CEO, CanAlaska Uranium Ltd.

    The TSX Venture has not reviewed and does not accept responsibility for
the adequacy or accuracy of this release: CUSIPNo. 13708P 10 2. This news
release contains certain "Forward-Looking Statements" within the meaning of
Section 21E of the United States Securities Exchange Act of 1934, as amended.
All statements, other than statements of historical fact, included herein are
forward-looking statements that involve various risks and uncertainties. There
can be no assurance that such statements will prove to be accurate, and actual
results and future events could differ materially from those anticipated in
such statements. Important factors that could cause actual results to differ
materially from the Company's expectations are disclosed in the Company's
documents filed from time to time with the British Columbia Securities
Commission and the United States Securities & Exchange Commission.

For further information:

For further information: Emil Fung, Vice President, Corp. Dev., Tel:
(604) 688-3211, Toll Free (N. America): 1-800-667-1870, Email:

Organization Profile

CanAlaska Uranium Ltd.

More on this organization

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890